Commercial Loans Held For Sale And Valuation Allowance

12 Months Ended

Dec. 31, 2011

Commercial Loans Held For Sale And Valuation Allowance [Abstract]

Commercial Loans Held For Sale And Valuation Allowance

5. Commercial Loans Held for Sale and Valuation Allowance

In September 2010, the Company began to market for sale a pool of specifically identified commercial loans. Commercial loans held for sale are carried at the lower of cost or fair value less estimated costs to sell. Through December 31, 2011, 14 of these loans with a gross book value of $19.2 million were sold. During the year ended December 31, 2011, three performing loans consisting of two relationships with a combined carrying value of $14.8 million were transferred at recorded fair value to loans held for investment as the Company's intention with respect to these loans had changed based on positive changes in the financial condition of the borrowers. In addition, during the year ended December 31, 2011, three loans with a combined carrying value of $10.7 million were paid off.

The Company is continuing its efforts to market and sell the remaining commercial loans held for sale. At December 31, 2011, commercial loans held for sale totaled $14.2 million, reflecting a valuation allowance of $2.6 million.